Financial Minister Nirmala Sitharaman on Friday took to her social media account X, formerly Twitter, to deny media reports claiming that the newly formed government will make changes to the income tax after the Lok Sabha Election result are declared on June 4th.
Sitharaman in her X post wrote, "Wonder where this is come from. Was not even double checked with @FinMinIndia. Pure speculation."
The report suggested that the upcoming newly formed government, post the Lok Sabha 2024 result plans to bring changes in the tax slabs and alternative measures to stop tax erosion as well as also highlighted about the possibilities of the income tax department imposing uniform capital gains on all types of assets after the general election result.
Current tax regime
The tax rules for various types of assets are determined by the Central Board of Direct Taxes (CBDT). When it comes to market-oriented assets like securities and equity mutual funds, both long-term and short-term capital gains tax apply.
For securities and equity mutual funds, if the gains exceed Rs 1 lakh, a long-term capital gains tax of 10 per cent is applicable. Short-term capital gains tax on debt mutual funds is calculated based on the individual's income tax slab if they are held for up to 36 months. In the case for debt mutual funds held for more than 3 years, a long-term capital gains tax of 20 per cent is applied, and investors can benefit from indexation. This means that the cost of acquisition is adjusted for inflation, which reduces the taxable amount.
Stock market
The stock markets on Friday ended the week on on a lower note as both the BSE Sensex and the NSE Nifty closed in the red. The 30-share BSE Sensex closed the day at 73,878.15, down by 73,878.15 points or 0.98 per cent. Similarly, the NSE Nifty ended negatively at 22,475.85, down by 172.35 points or 0.76 per cent.
